A lot has been made about the fact that Russian money was in Cyprus and that Cyprus was an offshore tax haven. A lot of people are claiming all of this money is mafia-related or in Cyprus to dodge taxes. And it is this claim, especially in German circles, which is driving the politics of the issue. These claims are way overblown.
Below are some thoughts on this for subscribers.
The German news link I posted last night alleging capital flight by government officials just prior to the bank holiday should be seen in that light. In this article, I am going strictly on what I know via reliable sources. However, I do not know Cyprus well enough to be able to say if the characterizations of the situation there are accurate. I just want to flag this from the outset because I am going to be talking...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.